Jun 21,2021

Should You Get a Merchant Cash Advance for an Auto Repair Business

A merchant cash advance for an auto repair shop is a great way to cover day-to-day operating expenses along with expansion and new business plans. Being in this line of work requires far more liquid funds than one may imagine. There are always repairs to be made, whether it's auto bodywork, engine or transmission work, brakes and alignments, mufflers and front-end work, oil changes and tune-ups, or all of the above.

Dealing with Technology Advancements

When it comes to owning an auto repair shop, staying technologically current in your sector is critical. To avoid a backlog of mechanics waiting to use a single machine, you may need to purchase one large diagnostic equipment for your business or many smaller devices for each of your mechanics. Increased regulation may require you to acquire a completely new machine in order to continue doing car inspections. A cash advance for an auto repair shop can help you secure the funds you need to buy new equipment for your business.

How a Merchant Cash Advance Works

With automotive business funding you will receive a flat sum of money based on the predicted future sales transactions of your company. MCAs are reimbursed at a predetermined withdrawal, either daily or weekly, based on the predicted earnings of your car repair firm. Business funding specialists will work with you throughout the process to help you understand the terms and conditions.

Traditional banks evaluate if your auto repair shop will be approved for funding based on your credit score, significant credit history and your collateral. On the other hand, automotive business funding requires only one online application and four months' worth of business bank statements. In addition, merchant cash advance lenders will be able to develop funding options that are perfectly suited to meet your business needs.